Massachusetts gas prices jump as Middle East conflict escalates: ‘KEEP OIL PRICES DOWN’
Local gas prices are on the rise in response to the escalating conflict in the Middle East.
The average gas price in Massachusetts on Monday was up 9 cents from last week ($2.99), averaging $3.08 per gallon, according to AAA Northeast.
Since the start of June, oil prices have risen more than $10 a barrel and are now hovering around between $74 and $78 a barrel — a price level last seen in January.
The spike stems in large part from the fighting that broke out between Israel and Iran beginning on June 13 — and then intensified over the weekend with the U.S. launching a series of airstrikes on Iranian nuclear facilities. Iran is now threatening to block oil shipments in the region.
President Donald Trump on Monday commented about the rising gas prices.
“EVERYONE, KEEP OIL PRICES DOWN. I’M WATCHING! YOU’RE PLAYING RIGHT INTO THE HANDS OF THE ENEMY. DON’T DO IT!” Trump posted.
“To The Department of Energy: DRILL, BABY, DRILL!!! And I mean NOW!!!” the president added.
Pump prices are also rising due to steady demand for gas, as the summer driving season shifts into higher gear.
“It should come as no surprise to see prices at the pump spike after an escalating geopolitical conflict in the Middle East, but it’s not the only factor driving recent price increases,” said Mark Schieldrop, of AAA Northeast. “Prices were already poised to climb on stronger summer demand and seasonal expectations.”
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The average price in Massachusetts of $3.08 per gallon is 7 cents higher than a month ago ($3.01). Meanwhile, the price is 35 cents lower than this day last year ($3.43).
Massachusetts’ average gas price is 14 cents lower than the national average. The Bay State holds 22nd place on the list of lowest gas prices in the nation.
AAA Northeast’s June 23 survey of fuel prices found the current national average up 8 cents from last week ($3.14), averaging $3.22 per gallon.
The national average price is 3 cents higher than a month ago ($3.19), and 22 cents lower than this day last year ($3.44).
Mississippi and Oklahoma have the lowest prices in the nation at $2.73 and $2.82, respectively.
California and Hawaii have the highest prices in the nation this week at $4.66 and $4.47, respectively.
Inventories of both oil and gasoline fell last week, according to the Energy Information Administration — with oil stocks falling by a sizable 12 million barrels to 420.9 million barrels, as refiners produced more gas and diesel and more oil was exported.
In the Northeast, gas supplies shrank by 700,000 barrels to 58.7 million barrels, which is still above 56.1 million barrels in storage last year, but below the 62-million-barrel five-year average.
The EIA last week reported demand for gasoline reached 9.29 million barrels a day — a figure in line with expectations for this time of year, and an increase over the prior week’s 9.17 million barrel a day reading.
After lackluster demand readings all through the spring, markets are reacting to the stronger numbers in recent weeks with optimism, sending wholesale gasoline prices higher.
